Motor insurance

Possessing a valid motor insurance policy assures coverage of the vehicle owners from any financial liabilities. It is among the significant insurance coverage one can have to keep from spending a great deal of money after an accident. Any unexpected incident can occur anytime, anywhere, and this is where the part of insurance coverage becomes crucial.

If you are looking to buy motor insurance, you should know its ins and outs. Also, knowing which motor insurance is ideal for you is essential. Reasons to opt for motor vehicle insurance are many. Keep reading the post to learn more about motor insurance and its advantages.

What is Motor Insurance?

Any vehicle insurance intended for two-wheelers, cars, or other road vehicles is termed motor insurance. People opt for motor insurance to protect them from damages caused to their valuable vehicles from accidents or natural calamities. Besides protection against accidents or natural causes, motor insurance also covers third-party liabilities. 

The power of holding a motor insurance policy can make you feel secure, and you wouldn’t need to burn a hole in your pocket. For complete coverage of your vehicle and other damages, avail of third-party and comprehensive insurance.

Is Motor Insurance mandatory?

Throughout the world, including India, motor vehicle insurance is compulsory according to the law. It is not an option. The Motor Vehicle Act of 1988 makes it obligatory for every vehicle to be insured before bringing it on the road. Vehicle registration, an authorised driving licence and an insurance plan are all the legal provisions covered under the Motor Vehicle Act.

Before taking your vehicle on the road, it should have, at the very least, third-party legal liability coverage. It is the minimum insurance requirement.

If anyone is caught disobeying the rules stated in the Motor Vehicle Act of 1988, they will have to face serious consequences or will be penalised. Most of us might not be aware of the full penalties range resulting from breaching the Motor Vehicle Act rules. Anyone caught breaking the law risks having their driving licence revoked.

Any infringement of the Act may result in a penalty of Rs. 1000 or up to three months of imprisonment. The Act also allows the lawbreaker’s vehicle registration to be terminated after the infringement. 

Features of Motor Insurance

We know that motor insurance coverage offers financial aid in a situation of damage to the vehicle or any bodily injury. It even provides coverage for third-party liability.

To enhance your insurance plan, you must purchase add-on coverages by paying extra premiums to the insurance company. With this, you can also ensure extensive security when driving the car.

Let us now discuss some essential features of a motor insurance plan.

Types of Motor Insurance in India 

• Two-Wheeler Insurance Policy: The two-wheeler insurance policy offers coverage for two-wheelers, such as a bike or a scooter. In this type of insurance plan, your two-wheeler gets coverage for various situations, including damages from an accident, fire, thefts, natural disasters, and so on. It covers third-party damages, as well. It even offers a personal accident insurance option that is necessary for the owner rider and applies to passengers, too.
• Private Car Insurance Policy: The private car insurance policy is insurance coverage obtained for private cars owned by an individual. This motor insurance covers damage from fire, disasters, accidents, or thefts. Besides, it even covers physical damage or personal injury. Third-party damages are also covered within this insurance plan. 
• Commercial Vehicle Insurance: Any non-personally used vehicles are insured by commercial vehicle insurance. This insurance plan offers coverage for vehicles that aren’t driven for personal usage. The vehicles that are mostly covered under this plan include taxicabs, buses, trucks, light commercial vehicles, multi-utility vehicles, auto-rickshaws, agricultural vehicles, etc. 

Types of Motor Insurance Policies

Here are the types of motor insurance that one can opt for in India:

• Third-Party Insurance

One must possess Third-Party Insurance while purchasing a new car, bike, scooter, or any other motor vehicle. This insurance policy covers damages incurred to third parties and vehicles because of any unforeseen incident like fire, theft, or accident.

• Comprehensive motor insurance

Comprehensive motor insurance helps cover the damage incurred to the car because of an accident, fire, or theft. The damage caused by the vehicle owner and third-party liabilities are too covered under this plan. Compared with Third-Party Insurance, the premiums for comprehensive motor insurance are typically high. Hence, you can use this plan to protect both your car and the vehicle’s owner if it meets your needs and budget. This motor insurance additionally offers cover from damage caused by a human-made disaster or act of God. But, the plan doesn't cover damages the vehicle's passengers suffered. We can cover the passengers also. It is an ideal motor vehicle insurance plan for those who own big cars such as sedans or SUVs.

Other Motor Insurance Coverage Plans:

• Roadside assistance: Ensures that the policyholder gets every service, for example, vehicle repair, in the event of a mid-journey breakdown. In such a situation, you need to contact them, and they will reach you in no time for repair services.
• Return to invoice cover: This type of motor vehicle insurance coverage gives coverage for the overall invoice amount of the vehicle. The road tax and registration cost are too included in it.
• Zero depreciation: A motor vehicle depreciates by value as it ages. The more the age, the more it depreciates. Therefore, one can opt for a zero depreciation coverage plan that can be added to the motor insurance plan to confirm no depreciation of the vehicle's value.
• Engine protection cover: In this plan, you obtain coverage for the cost of damage incurred to the vehicle’s engine owing to several reasons. These can be oil leakage, water going inside the engine, and other related damages.
• Tyre protect cover: In the tyre protect coverage, damage incurred because of tyre bursts, bulges, or cuts on the tyre will be covered.
• Consumables cover: This add-on coverage plan saves a sizable amount on minor and recurrent repairs that need consumable parts of the covered vehicle. Ball bearings, nuts, bolts, coolants, and lubricants are a few examples of consumable parts.

What Do Motor Insurances Cover?

Motor insurance offers a complete set of insurance plans for various vehicles, including cars, bikes, and light commercial vehicles. It covers the following damages that are caused due to any unforeseen event.

• Legal Expenses

In this, the coverage for expenses suffered while taking legal action against a third party to recover damages that are uninsured. It even offers coverage to defend a criminal act against the driver of the insured car.

• Tragic events

Tragic or catastrophic events coverage plan benefits in the situation of a loss that entails two or many vehicles incurred by a covered threat. These can be landslides, tornados, hurricanes, floods, and earthquakes.

• Third-Party Liability

This insurance plan covers the legal liability for third-party physical harm or death, or damage to the property caused by the covered driver.

• Personal Indemnity

This plan is beneficial in the situation of physical harm or death to the driver or passenger of a covered motor vehicle.

Motor Insurance Plans Across Different Providers

Below, we have listed the top motor insurance companies in India:

How to Choose Motor Insurance?

It may be a bit complicated to select a motor insurance coverage plan. There are certain things that you should take into consideration when choosing the best one. Following are some helpful tips to opt for a motor insurance plan:

• Know what type of insurance coverage you need

As you start your search for the ideal motor insurance, it is wise to know what insurance coverage meets your necessities. You must consider certain factors like your car’s worth, budget, driving history, and other crucial things.

• Do your research

After determining the type of Insurance you want, the next step is to research various insurance companies. Choose the one that can fulfil all your coverage requirements. Also, consider factors like the company’s status, financial stability, coverage options, and ratings.

• Make a comparison

Get quotations from at least three insurance companies to compare the coverage options and premiums. Request discounts, like a safe driver discount or a multi-policy discount, to lessen your premium as much as possible.

• Claim Settlement Ratio 

Checking an insurance provider's Claim Settlement Ratio or CSR is also an important step to consider. The claim Settlement Ratio is the overall percentage of claims settled by the provider. It is best to choose a provider having a good CSR as it reflects a lesser possibility of your claims getting denied by the company.

• Company’s authenticity

The authenticity of the insurance company can be checked with its IRDA Registration Number. IRDA is an entity that gives registration numbers only to legitimately operating insurance companies.

When Should You Get Motor Insurance?

Motor insurances are legal agreements between a vehicle owner and an insurance company. You must get motor insurance coverage as quickly as possible if you own a car or any other vehicle. These are mandatory in India. Even though the law doesn't ask for it, it is advisable to get insured to protect yourself and your car in an unpredicted event.

It is essential to buy a motor insurance plan due to so many things rather than just the legal requirement factor. There is an abundance of vehicles on the roads of India, and driving is linked with numerous risks. Vehicles are valuable modes of transportation, and you cannot simply compromise. By possessing an insurance cover, you can pay for several damages caused by accidents with a third party. In addition, you do not need to pay a hefty amount for vehicle damage repairs.